The commonly held belief, that health insurance for the self-employed has to be expensive, is not entirely true. Sure, if you are shopping for low co-pay/low-deductible plans, they can cost more than a group plan. But, there are some ways to make health insurance less expensive for the self-employed.
Below are three ways that Arizonans have been successful in getting affordable health insurance for the self-employed.
Pay your high deductibles with the money saved in a tax-deferred HSA. An HSA stands for Health Savings Account, and an Arizona health insurance broker can help you find a compatible health plan. With this type of plan, you contribute tax-deferred money to an interest-earning HSA account, which will issue you a debit card or checks just like a regular bank account. You then use the funds you save in the account to pay for high deductibles, co-pays or co-insurance, as well as other approved health-related expenses.
The best part about HSA plans is that the money stays in the account and gathers interest over time. Unlike flexible spending accounts, if you don’t use it, you don’t lose it. By accruing enough money to pay the higher deductible, self-employed individuals can feel confident buying less expensive HDHPs (High Deductible Health Plans). Many HSA-compatible HDHPs offer pre-deductible preventive care coverage for annual checkups and discounted pre-deductible prescriptions.
Join a “group” or organization that will allow you to join their group plan. Consider joining a professional organization or club that offers its members the option to join a group-sponsored health plan. These “groups” are a popular option for all sorts of professionals, and a great way to get affordable health insurance for the self-employed.
Opt for temporary health insurance until you find a more permanent plan. If you have recently started a business, it may be premature to enter into a long-term permanent health plan, especially if you expect to get group health coverage from a spouse or potential employer. Delaying a decision on health insurance is okay, but be sure you have some coverage in place, just in case you need it. A short-term health plan can begin the same day you buy it, and may be your best option until a more permanent plan is available.